Question

On December 31, Year 1, BIG Company had accrued salaries of $10.300. Required a. Record in general Journal format the adjustment required as of December 31, Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.) View transaction lit Journal entry worksheet < 1 Record the adjusting entry for salaries payable. Note: Enter dabits before credits General Journal Debit Credit Date December 31 Record entry Clearly View general Journal D. Show the effect of above adjustment in a horizontal statements model (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use the initials OA to designate operating activity, IA for Investing activity, FA for financing activity, NC for net change in cash, and NA for Not affected by the event.) BIG COMPANY Horizontal statements Model for Year 1 Btookholders Income statement Equity Ratained Earnings Ravenue Expancac = Net Income Event Liabilities Balaries Payabia Actats statement of Cach Flow c-1. Determine the amount of net Income BIG would report on the Year 1 Income statement, assuming that BIG received $21,100 of cash revenue. Not income C-2 What is the amount of net cash flow from operating activities for Year 1? Not cash flow from operating activities d. What amount of salaries payable would BIG report on the December 31, Year 1. balance sheet? Salaris payable

Answer 1

Requrement (a) Date Requirement (b) General Journal 31-Dec Salaries Expense Salaries Payable Debt Credit $10,300 $10,300 = Event Assets Big Company Horizontal Statements Model for year 1 Liabities + Stockholders Equity = Income Statement Statement of Cash Flows Salaries Payable Retaned Earning Revenue - Expense = Net Income $ 10,300 $ 10,300 $ (10,300) NA (To Record Adjusting Entry) Requirement (c-1) Net Income (21100-10300) $ 10,800 Requrement (c-2) Net Cash flow from Operating Activities $ 21,100 Requirement (c-3) Salaries Payable $ 10,300 Note : Please comment down for any further clarifications